Indian employees may get a 10.7% average salary hike this year: Deloitte
Pharma and infra companies are expected to lead in increases, says the survey
New Delhi: Indian companies will offer their workers an average salary hike of 10.7% in 2015-16 with pharmaceutical and infrastructure companies expected to lead in increases, consulting company Deloitte Touche Tohmatsu India Pvt. Ltd said on Monday.
According to the Annual Compensation and Benefits Trends Survey for the country, the average salary hike this year is slightly higher than the previous year’s 10.3%.
Pharmaceuticals, life sciences and healthcare continue to lead the pack with companies projecting average increments of 12.1% for the current financial year, whereas infrastructure and real estate are a close second with 12%.
Retail and logistics industries continue to lag with conservative projections of 9.4% and 9.8% respectively.
“The increase of 40 basis points (bps) in the projection over last year’s actual figures is guided by a conservatively positive market sentiment. While the attrition rate for financial year 2014–15 is higher than the preceding financial year by 30bps, the hiring outlook for the current year looks promising," said Vishalli Dongrie, senior director, Deloitte in India.
The survey was conducted across 250 companies across 18 industry verticals.
The report goes on to highlight that the highest projected increments across industries are at the junior management level at 11%. However, the middle, senior and top management levels are expected to get lower than average industry increment at 10.6%, 10.5% and 10.4%, respectively.
Information technology enabled service sector continues to report the highest attrition with an average rate of 21.9%, whereas energy and natural resources (10.5%) and chemicals (10.7%) reported the lowest average attrition rates across industries in 2014-15. Across industries, the highest attrition rates are observed at clerical and junior management levels as compared to the other management cadres, the company said.
The survey said, better career prospects, better salary and better work life balance are the among the key reasons for employee churn. “Across industries, a performance driven variable plan, long term incentives and cash/non-cash recognition or awards are the primary levers used for talent retention," the survey said.
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